Simmons First National (NASDAQ:SFNC – Get Free Report) and Benchmark Bankshares (OTCMKTS:BMBN – Get Free Report) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, profitability, earnings, analyst recommendations and dividends.
Insider & Institutional Ownership
27.6% of Simmons First National shares are owned by institutional investors. Comparatively, 3.2% of Benchmark Bankshares shares are owned by institutional investors. 0.8% of Simmons First National shares are owned by insiders. Comparatively, 14.0% of Benchmark Bankshares shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Simmons First National and Benchmark Bankshares, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Simmons First National | 0 | 5 | 2 | 2 | 2.67 |
| Benchmark Bankshares | 0 | 0 | 0 | 0 | 0.00 |
Profitability
This table compares Simmons First National and Benchmark Bankshares’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Simmons First National | -25.44% | 7.81% | 1.07% |
| Benchmark Bankshares | 23.80% | N/A | N/A |
Volatility & Risk
Simmons First National has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, Benchmark Bankshares has a beta of 0.13, indicating that its stock price is 87% less volatile than the S&P 500.
Dividends
Simmons First National pays an annual dividend of $0.86 per share and has a dividend yield of 4.0%. Benchmark Bankshares pays an annual dividend of $0.96 per share and has a dividend yield of 2.5%. Simmons First National pays out -33.6% of its earnings in the form of a dividend. Benchmark Bankshares pays out 21.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Simmons First National has raised its dividend for 14 consecutive years. Simmons First National is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings and Valuation
This table compares Simmons First National and Benchmark Bankshares”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Simmons First National | $1.43 billion | 2.19 | -$397.55 million | ($2.56) | -8.43 |
| Benchmark Bankshares | $83.37 million | 2.01 | $19.84 million | $4.46 | 8.46 |
Benchmark Bankshares has lower revenue, but higher earnings than Simmons First National. Simmons First National is trading at a lower price-to-earnings ratio than Benchmark Bankshares, indicating that it is currently the more affordable of the two stocks.
Summary
Simmons First National beats Benchmark Bankshares on 13 of the 18 factors compared between the two stocks.
About Simmons First National
Simmons First National Corporation operates as the holding company for Simmons Bank that provides banking and other financial products and services to individuals and businesses. The company offers checking, savings, and time deposits; consumer, real estate, and commercial loans; agricultural finance, equipment, and small business administration lending; trust and fiduciary services; credit cards; investment management products; treasury management; insurance products; and securities and investment services. It also provides ATM services; Internet and mobile banking platforms; overdraft facilities; and safe deposit boxes. The company was founded in 1903 and is headquartered in Pine Bluff, Arkansas.
About Benchmark Bankshares
Benchmark Bankshares, Inc. operates as the holding company for Benchmark Community Bank that provides various banking products and services in the United States. The company accepts various deposits, such as checking, saving, commercial services, and youth accounts. Its loan products include personal, mortgage, other real estate, business, auto, and student loans. The company also offers credit and debit cards; wealth management services comprising financial solutions, financial and retirement planning, and portfolio management, as well as estate, charitable giving, and trust services; and reorder checks, safe deposit boxes, wire transfers, bill pay, and internet and mobile banking services. The company was founded in 1971 and is based in Kenbridge, Virginia.
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